Sourcing funding for your business is a crucial part of your journey, but it’s not always easy to get.
If you’re looking for investor funding specifically, you’ll have to present your business in front of people who hear pitches all the time. So, you’ve got to grab their attention fast and make them believe in what you’re building.
Understandably, this can be daunting. And while several good practices can help you nail your pitch, it’s also important to be aware of the most common pitfalls and phrases that can instantly turn investors off, so you know exactly what to avoid when it’s your turn in the spotlight.
Having worked with entrepreneurs for over 20 years, we’ve listed ten of the biggest mistakes founders make when pitching, and how you can steer clear of them so that you can nail your pitch the first time.
💡Key takeaways
- Don’t be overconfident about your product, as bold claims without proof can make you look naive or overly optimistic.
- Be specific about your business model and numbers, as investors need to see a clear and realistic path to profitability.
- Don’t claim to have no competitors. You need to show understanding of the market, customer needs, and who you’re up against.
- Define the problem clearly and avoid too many buzzwords so that investors immediately understand the real pain point you’re solving and why it matters.
- You should end your pitch deck with a clear ask, so that investors know exactly what action you want them to take (e.g. the funds you want).
1. “Our product sells itself!”
The one thing a pitch deck shouldn’t be is cocky or overconfident.
Phrases like this might sound promising, but to investors, it gives the impression that you haven’t fully thought through how you’re going to attract and retain customers. Without a go-to-market plan, investors will worry that you’re underestimating the time, money, and effort it takes to build awareness and get the results you want.
This phrase also suggests you haven’t validated your assumptions with real-world data. Investors want to see that you’ve tested your messaging, identified your sales channels, and know how to turn customer interest into revenue. Relying solely on the product’s appeal can make it look like you’re hoping for organic growth without a strategy, which is a gamble most investors won’t take.
What you should do instead
Instead of making broad, overconfident claims, you should clearly outline your go-to-market strategy and back it up with real evidence. Make sure you show investors how you plan to build brand awareness, attract leads, convert them into customers, and then retain them.
Also, use real-world data if you have it, such as early sales figures, pilot program results, customer acquisition costs, and retention rates, as this will prove that you have a realistic and tested way to grow.
How long should a pitch deck be?
A pitch deck with too many slides can overwhelm investors, making it harder for them to focus on your key points. Therefore, it is recommended that you have between 10 and 15 slides altogether.
Think of your deck like a roadmap. It should guide investors through your idea quickly and clearly, highlighting the problem, your solution, market opportunity, business model, team, financials and funding needs.
2. “We just need 1% of the market.”
This statement might seem harmless (or even a little clever) at first, but it oversimplifies what it really takes to capture market share. Investors know that even a small slice of a large market can be incredibly hard to win, so they may see your statement as naive or overly simplistic.
Moreover, it can make you appear inexperienced and too optimistic. Investors will question whether you actually understand the difficulties in getting market share and whether you’ve thought about the steps needed to reach that goal. Even if your idea is strong, this kind of statement can make your pitch feel incomplete or unprepared.
What you should do instead
You’ll need to show investors that you understand your market and how you’ll get traction. With this, you should break down who your ideal customers are, how you’ll reach them, and what makes your approach different from competitors. Again, try to include data or early results, as this will prove that your strategy is effective and can work.
3. “We’ll figure out monetisation later once we have enough users.”
One of the key things investors want to know when you’re pitching is how you’re going to make money.
Even if you have a strong business idea, not having a clear model or being unable to explain your revenue streams is a huge red flag. Investors need to see that your business can generate sustainable income.
If your revenue model is vague or confusing, investors may question whether your business is viable or if it can scale. This can quickly erode their confidence and make them hesitant to invest in your venture.
What you should do instead
Be upfront and specific about how your business will make money. This means outlining your revenue streams, pricing strategy, and any assumptions behind your projections. Remember to use simple visuals or examples to make it easier for investors to understand, as this will show that your model is realistic and scalable.
4. “Everyone will want this.”
A huge part of starting a business is market research. And part of that research is identifying your target market.
A phrase like this practically screams that you haven’t thought about who your actual customers are. Not to mention that it’s extremely unrealistic as well, as no product or service appeals to literally everyone, so claiming universal appeal makes it seem like you haven’t bothered to research or define a clear target audience.
It also raises doubt whether you have a marketing and sales strategy, as investors want to see that you know exactly who your business is for and how you’ll reach them effectively.
What you should do instead
Rather than claiming that “everyone” will want your product/service, you should be specific about who your ideal customers are. Use your market research to define your target audience (e.g. their age, location, income, interests, etc.) and the problem you’re solving for them. The more clearly you can describe them and what your business can do for them, the more investors will believe you can reach and convert them.
5. “We don’t have any competitors.”
This phrase is a huge no-no.
If you fail to show any understanding of your competitors, or merely say that you don’t have any, investors will seriously doubt your business’s viability. It also shows a lack of market research and awareness, and investors will assume you haven’t fully thought about the challenges your business will face.
Failing to demonstrate competitor research can make investors see your business as high-risk or poorly thought out, which could lead them to pass on your pitch completely. It also undermines your credibility, as investors want to back founders who clearly understand the market, can anticipate challenges, and have a realistic plan to attract customers and compete with other businesses effectively.
What you should do instead
Make sure to research your competitors thoroughly and be ready to present your findings. You should show who your competitors are, how your product/service is different, and the size and potential of your target market. Also, use data, charts, or real-world examples to back up your claims, so investors can see that you’ve done your homework and understand the industry and market you’re entering.
6. “We’ll break even in two years and hit £50 million in sales by year three.”
Investors want to see growth potential, but you shouldn’t have unrealistic or overly optimistic financial projections. Overconfidence, inflated revenue estimates, or vague assumptions will make investors sceptical and quickly turn them off.
Another example is claiming that your product will capture 50% of a large market without any supporting data.
Both of these phrases can significantly undermine your credibility, as investors will start to think that you don’t understand the market, and your figures are merely wishful thinking.
What you should do instead
Be honest and grounded with your numbers. You should base your projections on realistic assumptions, historical data, and market research. Additionally, your pitch should show a clear path to growth, including milestones and key metrics, so investors can see that your financial plan is achievable and well-thought-out.
7. “People are looking for better seamless experiences online”
The problem you’re trying to solve should be clear in all aspects of your business, from your business plan and elevator pitch to your product development and marketing strategy.
However, vague or unclear statements, such as the one above, don’t give a clear indication of what the problem is or why it’s important. Being vague about the problem can make your entire pitch feel unfocused, leaving investors unsure about why your product or service is needed. They may also assume that if you can’t clearly articulate the problem, you’ll likely struggle to offer a solution that truly meets customer needs.
You should also avoid too many buzzwords, as this just ends up making your pitch deck sound like filler. For example, saying things like “We’re revolutionising the paradigm of user engagement” is confusing and doesn’t tell investors what the problem actually is or why it matters.
What you should do instead
Try to be specific when describing the problem your business wants to solve. Explain who is affected, why it matters, and the impact if it isn’t solved. Real-world examples or data can help to make this part more tangible, and you should focus on clarity over flashy language, as this will help investors understand the value of your solution quickly.
Pro tip: avoid overexplaining
While you might be keen to share the details, try to avoid over-explaining, as this can dilute your main message and cause investors’ attention to drift.
Investors typically spend less than three minutes on a pitch deck, so make sure you don’t have excessive slides and stick with the key details.
8. “Let’s not worry about that right now — it won’t be an issue.”
When pitching to investors, you’re inevitably going to be asked some difficult questions. This is because investors want to test how you handle challenges, so you may be asked about any potential risks, weaknesses in your plan, or scenarios when your strategy might fail.
However, you shouldn’t deflect these questions completely, because it can make you seem unprepared or evasive, which will hurt both your chances and credibility with investors.
You may not like them, but avoiding tough questions will make investors doubt your competence and commitment, or whether you’ve truly thought through your business. Even if your idea is strong, evading these questions will create the impression that you’re not ready to handle real-world challenges, which in turn can hurt their confidence in both you and your startup.
What you should do instead
It’s okay to admit when you don’t know the answer to certain questions. That being said, you should show that you have a plan to find the right answer or mitigate the risk.
For example, if an investor asks about a potential market risk you haven’t fully researched, you could say: “We don’t have the full data yet, but we’re planning a targeted study over the next quarter to assess it and adjust our strategy accordingly.”
9. “We can’t share details about our team right now.”
The people behind your business play a huge role in the business’s success. However, if you skip why you and your team are the right people to execute the idea, investors may think anyone could do it. This can have a knock-on effect on investor confidence in your ability to deliver results, thus making it harder for them to see the unique value your team brings.
Also, if you don’t show the key people behind the team, including their relevant skills and qualifications, it could risk coming across as dodgy. Forgetting to add this information, or just being reluctant to share it in the first place, will be a sure sign to investors that your team may not be capable of launching and growing the business.
What you should do instead
Your deck should include a slide that lists the key people in your team, including the relevant skills, qualifications, and experience. You could also briefly mention each person’s achievements or successes that are relevant to your business, as this will help show your team is uniquely positioned to make the idea work. Personal stories or motivations can also add a human touch, helping investors connect with your team and believe in your ability to deliver on your plans.
10. “So… yeah, that’s our idea. Thanks for listening.”
The ask is something that you should include at the end of your pitch deck so that investors leave with a clear understanding of what you need from them.
Without this, you risk showing a lack of preparation and weak credibility, and investors won’t be sure about how they can contribute. This can reduce the likelihood of follow-up meetings or even getting funding, so the efforts of your pitch could ultimately end up wasted.
All in all, it can make your pitch feel incomplete and leave investors uncertain about your business priorities and your ability to accomplish your plans.
What you should do instead
To make your ask effective, be specific about the amount you need, how it will be used, and the impact it will have on your business growth. This not only shows that you’ve done your homework, but also gives investors a good idea of the potential return on investment (ROI). It can also leave a lasting impression and increase your chances of securing the support you need.
Conclusion
Pitching to investors, whether it’s an angel investor or a venture capitalist (VC) firm, is as much about storytelling as it is numbers. Avoiding these phrases can make the difference between securing funding and leaving empty-handed.
Remember to keep your pitch clear and focused, backed by data, and with plenty of human touch. Your pitch shouldn’t just explain your business; it should convince investors that you and your team can turn your idea into a reality.
Once you’ve got these key points, you’ll be one step closer to securing the funding and support you need to grow.
